The social interest theory of regulation asserts that regulation
A) seeks an efficient use of resources.
B) is aimed at keeping prices as low as possible.
C) helps firms maximize economic profit.
D) of a natural monopoly must be done using rate of return regulation.
E) does not work for society as well as would allowing the firms freedom from regulation.
A
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In the above figure, what is the equilibrium level of real GDP with government and the foreign sector?
A) $4.0 trillion B) $2.5 trillion C) $3.0 trillion D) $2.0 trillion
The demand for microwaves in a certain country is given by: D = 8,000-30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, the domestic quantity demanded will be ________ and quantity supplied will be ________.
A. 6,500; 3,000 B. 5,000; 5,000 C. 6,000; 4,000 D. 6,500; 4,500